we begin with the obama administration facing a firestorm of criticism on two fronts. there's health care and an important hearing we will have more on that in a moment. >> but first the growing calls to stop spying on allies. here's abc's jonathan karl. >> reporter: under fire for allegedly spying on americans and america's friends. the nation's spy chief made no apologies. >> we do not spy on anyone except for valid foreign intelligence purposes and only work within the law. >> reporter: abc news has confirmed reports u.s. intelligence has listened in on the phone conversations of the leaders of 35 american allies. reports that drew sharp criticism from top members of congress in both parties. >> the reports are very disturbing. friends don't spy on friends. >> reporter: or do we? is spying on friends still going on? >> is the united states now listening in on the phone conversations of friendly presidents and prime ministers? >> john, i'm not going to get in to discussions of specific activities, intelligence gathering activities. >> we are listening in to the conve